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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:
WIPER INC. | |||||||||
Condensed Balance Sheets | |||||||||
December 31, 2020, 2019, 2018 | |||||||||
(in millions) | |||||||||
2020 | 2019 | 2018 | |||||||
Current assets | $ | 734 | $ | 959 | $ | 813 | |||
Other assets | 2,421 | 1,928 | 1,727 | ||||||
Total assets | $ | 3,155 | $ | 2,887 | $ | 2,540 | |||
Current liabilities | $ | 585 | $ | 838 | $ | 731 | |||
Long-term liabilities | 1,555 | 1,015 | 883 | ||||||
Stockholders equity | 1,015 | 1,034 | 926 | ||||||
Total liabilities and stockholders' equity | $ | 3,155 | $ | 2,887 | $ | 2,540 |
WIPER INC. | ||||||
Selected Income Statement and Other Data | ||||||
For the year Ended December 31, 2020 and 2019 | ||||||
(in millions)
| ||||||
2020 | 2019 | |||||
Income statement data: | ||||||
Sales | $ | 3,058 | $ | 2,921 | ||
Operating income | 304 | 318 | ||||
Interest expense | 92 | 73 | ||||
Net income | 215 | 210 | ||||
Other data: | ||||||
Average number of common shares outstanding | 42.1 | 47.5 | ||||
Total dividends paid | $ | 58.0 | $ | 53.1 | ||
Required:
- Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
- Calculate return on equity for 2020 and 2019.
- Calculate working capital and the current ratio for each of the past three years.
- Calculate earnings per share for 2020 and 2019.
- If Wiper's stock had a price/earnings ratio of 13 at the end of 2020, what was the market price of the stock?
- Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
- Calculate the dividend payout ratio for 2020.
- Assume that accounts receivable at December 31, 2020, totaled $317 million. Calculate the number of days' sales in receivables at that date.
- Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
- Calculate the times interest earned ratio for 2020 and 2019.
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